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What is the best UK ETF that tracks the Nasdaq 100?

Ideally a low share price as my broker does not allow fractional shares.

My main query is whether to go for synthetic replication or physical? I do like n100 from ishares, and see them as a trusted company. But on the other hand, I do like owning my stocks but could stomach owning a synthetic etf if it means I avoid 15% tax on US Stocks. The ETF I would be looking for physical replication is QQQA as they too have a low share price. I would love to hear what you all have to say about this and if there are any options that I haven’t considered. Thanks 

Comments

  • blowzy
    blowzy Posts: 31 Forumite
    10 Posts
    Is this better than investing in google
  • Sea_Shell
    Sea_Shell Posts: 10,117 Forumite
    Tenth Anniversary 1,000 Posts Photogenic Name Dropper
    Not a true NASDAQ tracker, but IMO the Rathbone Global Opportunities fund, gets close.

    It you overlay the performance graph of them both, they are well aligned and seem to move in lockstep.

    DYOR
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.60% of current retirement "pot" (as at end May 2025)
  • blowzy
    blowzy Posts: 31 Forumite
    10 Posts
    If I am already invested in all world, would it be too concentrated if I also invested in the NASDAQ 100?
  • Eyeful
    Eyeful Posts: 1,171 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    edited 25 November at 9:22PM
    1. Do you actually understand the difference between synthetic replication & physical?
    2. Do you understand the extra third party risk you are taking on. with synthetic replication?  

    3. A physical ETF buys the real shares in the companies  it’s meant to track.

    4. A synthetic ETF makes a deal with a third party to copy the same results of the ETF without buying any shares in those companies. The third party supplies securities they claim will match the value.
    If that third party fails and those securities turn out to be poor or worthless, then you are in very real trouble.

    5. I personally would never ever touch synthetics.
    I remember hearing a radio program some years ago, where the third party did go "belly up" and the securities they supplied turned out to be of poor quality.

    6. Suggest you stick to physical ETF's from good quality suppliers.
  • InvesterJones
    InvesterJones Posts: 1,380 Forumite
    1,000 Posts Third Anniversary Name Dropper
    I don't see a concern with QQQA, but..
    blowzy said:

    I would love to hear what you all have to say about this and if there are any options that I haven’t considered. Thanks 
    Yes, just a simple global tracker. Nasdaq is taking a bet on tech.

  • masonic
    masonic Posts: 28,310 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    blowzy said:
    If I am already invested in all world, would it be too concentrated if I also invested in the NASDAQ 100?
    You are just increasing concentration. Look at the top 10 holdings of your all world fund and compare. Do you need more?
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